Article vending machine and method for exchanging an inoperable article for an operable article

ABSTRACT

An article vending machine in a network of article vending machines capable of exchanging an inoperable rental article received from a user for an operable replacement article. The article dispensing machine checks customer identification information against one or more customer rental criteria to determine if the customer is eligible to exchange an inoperable article for an operable one. The article vending machine searches for an identical replacement article within an inventory of the machine itself and within inventories of the networked article vending machines. Alternatively, the article vending machine may provide a refund for the inoperable article.

CROSS REFERENCE

This application is being filed simultaneously with U.S. patentapplication Ser. No. ______, entitled “Article Vending Machine andMethod for Exchanging an Inoperable Article for an Operable Article”,Attorney Docket No. 19638.05US1, which is hereby incorporated herein byreference in its entirety.

TECHNICAL FIELD

The present invention relates to improvements in article dispensingmachines and components and methods related to the same. Moreparticularly, the present invention relates to a digital video disc(DVD) dispensing apparatus and method for exchanging an inoperablearticle for an operable one.

BACKGROUND AND SUMMARY OF THE INVENTION

While the present invention is often described herein with reference toa digital video disc distribution system, an application to which thepresent invention is advantageously suited, it will be readily apparentthat the present invention is not limited to that application and can beemployed in article dispensing systems used to distribute a wide varietyof rentable articles.

An improved DVD dispensing machine is disclosed in commonly owned U.S.Pat. No. 7,234,609, which is herein incorporated by reference in itsentirety. The invention of the U.S. Pat. No. 7,234,609 and the presentinvention can function as a DVD dispensing machine-based distributionsystem that will typically have multiple units of each new release perDVD dispensing machine. The dispensing machines of the U.S. Pat. No.7,234,609 and the present invention can stock up to two thousand DVDs(movies, games or other entertainment content), making the systemcompetitive with existing brick-and-mortar video rental superstores.

The dispensing machine and system of the U.S. Pat. No. 7,234,609 and thepresent invention distinguishes itself from such stores by offeringmajor benefits not conventionally offered by such stores, includingadditional cross-marketing programs (e.g., promotional rentals for acertain amount of dollars spent at the hosting store) and convenience(e.g., open always).

The dispensing machine of the U.S. Pat. No. 7,234,609 and the presentinvention yields a competitive advantage in the DVD rental marketplaceby offering consumers cross-marketing/promotional programs, convenienceof selection (e.g., computer-based searches for movies andrecommendations based on consumer profiles), and potentially extendedhours. The present invention employs a more cost-effective, convenientplatform than brick-and-mortar stores. In addition, with the presentinvention, DVD dispensing machines can be situated in hosting locationshaving high foot traffic, such as at a popular grocery store,restaurant, drug store, and/or other popular hosting locations.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the presentinvention can be operated at a substantial savings over the costsassociated with traditional brick-and-mortar video rental stores. Forexample, the present invention does not require hourly employees manningthe dispensing machines or restocking them with inventories, due to theability of the article transport storage units to be delivered to/pickedup from host locations by third-party delivery services, such astraditional or contracted courier services.

Unlike brick-and-mortar stores, the dispensing machine of the U.S. Pat.No. 7,234,609 and the present invention does not require an on-sitestore manager because all operational decisions can be made at acentralized location by a management team officed remote from thehosting locations. Unlike brick-and-mortar stores, the dispensingmachine of the U.S. Pat. No. 7,234,609 and the present invention doesnot require significant physical space. Unlike brick-and-mortar stores,the dispensing machine of the U.S. Pat. No. 7,234,609 and the presentinvention has low operating costs because no heating or air conditioningis required for the dispensing machines and they consume a relativelylow level of electrical energy. In addition, the dispensing machine ofthe U.S. Pat. No. 7,234,609 has low maintenance costs and downtime.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the presentinvention addresses the shortcomings of traditional brick-and-mortarstores in a convenient and cost-effective delivery vehicle having theadded bonus of serving as an effective promotional platform that drivesincremental sales to hosting locations. In addition, the dispensingmachine of the U.S. Pat. No. 7,234,609 and the present inventionovercomes these disadvantages by at least offering more new releases andolder selections for any given time period, and lower cost per viewingwith significantly more convenience than Internet-based and pay-per-viewservices.

The dispensing machine of the U.S. Pat. No. 7,234,609 and the presentinvention is a fully automated, integrated DVD movie video and videogame rental and/or purchase systems. It preferably incorporates robust,secure, scalable software that provides a fully personalized userexperience and real-time feedback to hosting locations and advertisers,scalable hardware that leverages existing technologies such as touchscreen, focused audio speakers and plasma video monitors, technologyutilizing the Internet through a system website, and an articletransport storage unit that facilitates the exchange of new DVDs for oldDVDs in each machine with virtually no need for human intervention.These technologies and others fill long-felt needs in the art and giveadvantages over conventional video distribution options. The dispensingmachine of the U.S. Pat. No. 7,234,609 and the present inventionfunctions as much as a promotional platform as it does a rental kiosk.

By utilizing the dispensing machines and the fully-interactive,real-time, linked Internet website, consumers can rent one or more DVDmovie videos, video games, or other entertainment content directly fromdispensing machines as well as indirectly by making a rental reservationthrough the website for later pickup at a conveniently located machine.These dispensing machines are preferably networked with each other, withthe inventory control and/or supply office and with the system websiteby phone-line, DSL, or other Internet connection at each hostinglocation. Through this linked network, the rental experience for eachconsumer can be customized based on a profile for each consumer, such asvia personalized home pages and rental screens.

As with any DVD rental system, from time to time a user may return adamaged or otherwise unplayable disk, which may later be rented out to acustomer who receives the unplayable disk. The present invention isdirected to a DVD dispensing machines and method for permitting acustomer who receives an unplayable disk to exchange that unplayabledisk for a playable disk. The present invention enables a user to returnthe unplayable disk to the article vending machine, indicate that theuser wishes to exchange an unplayable disk via a user interface, andexchange the unplayable disk for a functional one. In one embodiment,instead of permitting an exchange when a customer returns an unplayabledisk, the article dispensing machine may automatically reimburse theuser the cost of the rental for the unplayable disk.

In certain embodiments, the article dispensing machine may firstdetermine whether the customer is eligible to exchange the disk based ona customer criteria. This may be desirable to prevent a customer fromrepeatedly fraudulently claiming that a disk is inoperable in order toexchange it for a new disk without paying an extra fee. This feature mayalso be desirable to limit situations in which a customer has repeatedproblems playing various disks due to deficiencies with the customer'sdisk player rather than due to any problem with the disks. For example,the article dispensing machine may not permit exchange if the customerhas used the exchange function for more than 20% of the customer'srentals, which may indicate that the customer is merely using theexchange function to try to get a new rental without paying another fee.In some embodiments, in response to a customer request to exchange adisk, the dispensing machine may determine whether the vending machinecontains other disks of the same title. If the dispensing machine doesnot contain another disk of the same title, the machine may offer thecustomer the option to exchange the unplayable disk for a disk of adifferent title. Alternatively, or additionally, the dispensing machinemay determine which other dispensing machines in the area have a disk ofthe same title and may provide the customer the choice to exchange forthose disks located at a different vending machine. In certainembodiments, in response to a request from a designated service person,the article vending machine may be configured to automatically purge allof the articles that have been returned because they were inoperable.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is an illustration of a system for communicating and processinginformation in a network of article dispending machines and dispensingapparatus;

FIG. 2 is a perspective view of an article dispensing machineconstructed in accordance with the principles of the present invention;

FIG. 3 is a partially open perspective view of a portion of the articledispensing machine of FIG. 2 with certain elements removed for clarity;

FIG. 4 is a plan view of the portion of the article dispensing machineof FIG. 3;

FIG. 5 is a perspective view of portions of the article dispensingmachine of FIG. 2 with certain elements removed for clarity;

FIG. 6 is a flowchart illustrating an order of operations performed byan article dispensing medicine for exchanging an inoperable article foran operable one;

FIG. 7 is a flowchart illustrating a second embodiment of an order ofoperations performed by an article dispensing machine for exchanging aninoperable article for an operable one;

FIG. 8 is a flowchart of illustrating an order of operations performedby an article vending machine connected to a network for exchanging aninoperable article for an operable one;

FIG. 9 is a continuation of the flowchart of FIGS. 8 and 13;

FIG. 10 is a flowchart of illustrating an order of operations performedby an article vending machine for dispensing inoperable articles;

FIG. 11 is a flowchart illustrating an order of operations performed byan article dispensing medicine for receiving an inoperable article andproviding a refund for the cost of the rental of the inoperable article;

FIG. 12 is a flowchart illustrating a second embodiment of an order ofoperations performed by an article dispensing medicine for receiving aninoperable article and providing a refund for the cost of the rental ofthe inoperable article;

FIG. 13 is a flowchart of illustrating an order of operations performedby an article vending machine connected to a network for receiving aninoperable article and providing a refund for the cost of the rental ofthe inoperable article;

FIGS. 14-16 are illustrations of exemplary article browsing and searchscreens for an article dispensing machine.

DETAILED DESCRIPTION OF THE INVENTION

While this invention is susceptible of embodiments in many differentforms, there is shown in the drawings and will herein be described indetail preferred embodiments of the invention with the understandingthat the present disclosure is to be considered as an exemplification ofthe principles of the invention and is not intended to limit the broadaspect of the invention to the embodiments illustrated.

FIGS. 1-3 illustrate an article dispensing machine designated 230.Article dispensing machine 230 may be one of a plurality of articledispensing machines included within an article distribution systemhaving a plurality of such machines situated at a plurality of hostinglocations. The article dispensing machines of a particular articledistribution system preferably form a network. As such, those machinesare preferably in electrical communication with each other and with acentral server or central controller.

As shown in FIG. 1, each article dispensing machine 230 includes adispensing machine processor 300, also referred to herein as a vendingcontroller, which is connected to a user interface control system 234and a code reading device 370 collectively referred to as “theperipheral devices.” The processor 300 is capable of executing variousprograms to provide input to and/or receive outputs from the peripheraldevices. Suitable processors for such use are known to those of skill inthe art. In addition, the processor is operably connected to at leastone memory storage device 281, such as a hard-drive or flash-drive orother suitable memory storage device.

Article dispensing machine memory storage device 281 can include any oneor a combination of volatile memory elements (e.g., random access memory(RAM, such as DRAM, SRAM, SDRAM, etc.)) and nonvolatile memory elements(e.g., ROM, hard drive, tape, CDROM, etc.). Moreover, article dispensingmachine memory storage device 281 may incorporate electronic, magnetic,optical, and/or other types of storage media. Article dispensing machinememory storage device 281 can have a distributed architecture wherevarious components are situated remote from one another, but are stillaccessed by processor. Article dispensing machine memory storage deviceincludes an article dispensing machine database 282.

The article dispensing machines 230 preferably comprise a network ofmachines in communication with one another. As shown in FIG. 1, in thepreferred configuration, the article dispensing machines 230 arenetworked with one another via a central server or central controller302 in a hub-and-spoke system. However, optionally, the articledispensing machines may be connected and communicate directly with oneanother, and/or subsets of article dispensing machines may communicatewith one another directly as well as with the central server 302.

Generally, in terms of hardware architecture, the central server 302includes a central processor and/or controller, central memory, and oneor more input and/or output (I/O) devices (or peripherals) that arecommunicatively coupled via a local interface. The architecture of thecentral server is set forth in greater detail in U.S. Pat. No.7,234,609, the contents of which are incorporated herein by reference.Numerous variations of the architecture of the central server would beunderstood by one of skill in the art and are encompassed within thescope of the present invention.

Steps and/or elements, and/or portions thereof of the present inventionmay be implemented using a source program, executable program (objectcode), script, or any other entity comprising a set of instructions tobe performed. When a source program, the program needs to be translatedvia a compiler, assembler, interpreter, or the like, which may or maynot be included within the memory, so as to operate properly inconnection with the operating system (O/S). Furthermore, the softwareembodying the present invention can be written as (a) an object orientedprogramming language, which has classes of data and methods, or (b) aprocedural programming language, which has routines, subroutines, and/orfunctions, for example but not limited to, C, C++, Pascal, Basic,Fortran, Cobol, Perl, Java, and Ada. frequency (RF) or othertransceiver, a telephonic interface, a bridge, and a router.

When article dispensing machine 230 is in operation, the articledispensing machine processor is configured to execute software storedwithin article dispensing machine memory, to communicate data to andfrom the dispensing machine memory, and to generally control operationsof article dispensing machine pursuant to the software. The softwareaspects of the present invention and the O/S, in whole or in part, buttypically the latter, are read by processor, perhaps buffered within theprocessor, and then executed.

When the present invention or aspects thereof are implemented insoftware, it should be noted that the software can be stored on anycomputer readable medium for use by or in connection with any computerrelated system or method. In the context of this document, a computerreadable medium is an electronic, magnetic, optical, or other physicaldevice or means that can contain or store a computer program for use byor in connection with a computer related system or method. The presentinvention can be embodied in any computer-readable medium for use by orin connection with an instruction execution system, apparatus, ordevice, such as a computer-based system, processor-containing system, orother system that can fetch the instructions from the instructionexecution system, apparatus, or device and execute the instructions. Inthe context of this document, a “computer-readable medium” can be anymeans that can store, communicate, propagate, or transport the programfor use by or in connection with the instruction execution system,apparatus, or device. The computer readable medium can be for example,but not limited to, an electronic, magnetic, optical, electromagnetic,infrared, or semiconductor system, apparatus, device, or propagationmedium. More specific examples (a non-exhaustive list) of thecomputer-readable medium would include the following: an electricalconnection (electronic) having one or more wires, a portable computerdiskette (magnetic), a random access memory (RAM) (electronic), aread-only memory (ROM) (electronic), an erasable programmable read-onlymemory (EPROM, EEPROM, or Flash memory) (electronic), an optical fiber(optical), and a portable compact disc read-only memory (CDROM)(optical). Note that the computer-readable medium could even be paper oranother suitable medium upon which the program is printed, as theprogram can be electronically captured, via, for instance, opticalscanning of the paper or other medium, then compiled, interpreted orotherwise processed in a suitable manner if necessary, and then storedin a computer memory.

For communication with the central server 302, article dispensingmachine 230 is equipped with network communication equipment andcircuitry. In a preferred embodiment, the network communicationequipment includes a network card such as an Ethernet card. In apreferred network environment, each of the plurality of articledispensing machines 230 on the network is configured to use the TCP/IPprotocol to communicate via the network 301. It will be understood,however, that a variety of network protocols could also be employed,such as IPX/SPX, Netware, PPP and others. It will also be understoodthat while a preferred embodiment of the present invention is forarticle dispensing machine 230 to have a “broadband” connection to thenetwork 301, the principles of the present invention are alsopracticable with a dialup connection using a standard modem. Wirelessnetwork connections are also contemplated, such as wireless Ethernet,satellite, infrared and radio frequency networks.

The central controller 302 communicates with the article dispensingmachine controllers 300 via the network 301. The central controller 302is preferably located at a central station or office that is remote fromthe plurality of article dispensing machines 230. The central controller302 can operate as the server for communicating over the network 301between the plurality of article dispensing machines 230. The centralcontroller 302 receives communications and information from the articledispensing machines 230, and also transmits communications andinformation to the machines 230. For example, when a DVD rentaltransaction is performed at the article dispensing machine 230,transaction data such as the rented DVD title is then transmitted fromthe machine 230 to the central controller 302 via the network 301. Itwill be understood that central servers in general, such as the centralcontroller 302, are often distributed. A plurality of centralservers/controllers 302 may optionally be arranged in “load balanced”architecture to improve the speed and efficiency of the network. Toaccomplish the implementation of multiple controllers 302, thecontrollers 302 may be in communication with a router/distributor 303.

The central controller 302 is also in communication with a centraldatabase 304. The central database 304 stores information regarding thetransaction network, customers and customer transactions. For example,the central database 304 stores data regarding the vending inventory ateach of the plurality of article dispensing machines 230. The centraldatabase 304 also stores sales information regarding the salesquantities of the vending merchandise stored in the machines 230. Forexample, the central database 304 stores information regarding the salestotals for each DVD title and for each machine 230 vending location.Central database 304 also stores user information and rental transactioninformation, such as user IDs, PINs, the date on which DVDs are due tobe returned, and the date on which DVDs were rented from the machines230. Some of this information is also preferably stored in articledispensing machine database 282. The central database 304 may also storea master inventory list of the DVDs housed in each of the dispensingmachines.

Central database 304 is preferably a relational database, although othertypes of database architectures may be used without departing from theprinciples of the present invention. For example, database 304 may be aSQL database, an Access database or an Oracle database, and in any suchembodiment have the functionality stored herein. Central database 304 isalso preferably capable of being shared, as illustrated, between aplurality of central controllers 302 and its information is alsopreferably capable of being transmitted via network 301. It will beunderstood that a variety of methods exist for serving the informationstored in central database 304. In a preferred embodiment, .net andMicrosoft Reporting Services are employed, however, other technologiessuch as ODBC, MySQL, CFML and the like may be used.

The central controller 302 and central database 304 are also preferablyaccessible by a personal computer 306. The personal computer 306 will beunderstood as comprising hardware and software consistent withmarketable personal computers, such as a display monitor, a keyboard andmouse and a microprocessor. The personal computer also comprisesInternet browser software such as Firefox or Internet Explorer oranother such interface. Using the browser software, a user at thepersonal computer 306 can access a web interface through the centralcontroller 302. To that end, central controller 302 preferably comprisesweb server software such as IIS or Apache. It will be understood that avariety of web server software and web browser software exists toimplement the principles of the present invention without departingtherefrom. Through the web browser software, the personal computer 306communicates with the central controller 302 and allows the user tologin to a central command functionality of the central controller 302and to view and modify data stored in the central database 304. Thebrowser interface also allows the user to perform certain systemfunctions, which will affect the inventory and behavior of the articledispensing machines 230.

In a preferred embodiment, a financial server 305 is also incommunication with the network 301. It will be understood that a varietyof financial services exist for processing financial information via theInternet and other networks 301. Those services allow for the processingof credit card and debit card information, so that users of the servicesdo not have to interface directly with credit and debit card companies.In FIG. 1, the financial server 305 is illustrated as a single server,although the financial server 305 may comprise an entire sub-network offinancial servers 305 responsible for processing financial information.

As shown in FIG. 2, article dispensing machine 230 includes a machinehousing 232 with front, rear, top, bottom and side panels. The machinehousing 232 is preferably a combination molded fiberglass and sheetmetal cabinet. However, those skilled in the art will appreciate thatthe housing can be constructed from a variety of other suitablematerials and with a variety of other suitable manufacturing techniques.

As shown most clearly in FIG. 2, a user interface portion 234 of housing232 includes a card reader 240, a keypad and/or touch screen 242 and anarticle transfer opening 244 sometimes referred to herein as areceptacle. The card reader 240 is preferably designed in known fashionto read magnetically encoded membership and/or credit cards forauthorizing the distribution of articles of inventory through thearticle transfer opening 244. Keypad and/or touch screen 242 permitsconsumers and/or inventory stocking personnel to communicate with thedispensing machine 230 and/or a central office linked in electricalcommunication with the dispensing machine. Keypad and/or touch screen242 also permits consumers and/or inventory stocking personnel to enterappropriate commands directed to carrying out specific machine tasks. Itwill be appreciated that the optional touch screen includes a monitormade with known technologies making it capable of being utilized as auser interface for entry of commands designed to carry out machinetasks.

Furthermore, it will be appreciated that additional user interfaceportions having additional or even identical user interface componentscould be incorporated within article dispensing machine 230. Forexample, these components could be incorporated on other panels of thehousing 232 of machine 230 so that the machine can be usedsimultaneously by multiple consumers, translating into more efficientdistribution of articles in high traffic areas.

Turning now to the functioning of the machine during a consumertransaction, as a consumer approaches an article dispensing machine, theconsumer observes the display monitor and the user interface 234. Theconsumer may also observe a plasma/LCD monitor displaying marketinginformation, or a lightbox containing marketing information for brandingthe vending apparatus 230. The consumer then enters the appropriatecommands at the user interface control 234 associated with thedispensing machine to select a disk to be dispensed by the machine. Theuser interface can employ simple menus and a fixed set of keys forconsumers to make their selections, it can employ break-resistant touchscreens, or it can employ a combination of both. Once a selection hasbeen made, the consumer then merely inserts his/her magnetically encodeddispense activation card into the card reader 240 positioned at thefront of the dispensing machine 230 and, in response, the machine willdispense the selected disk without the need for further input by theconsumer.

Referring now to FIG. 3, which shows the components positioned in theinterior of dispensing machine 230, the article dispensing machineincludes a storage device 248 which is a carousel-style, cylindricalstorage facility having a plurality of compartmentalized rows 249defined by circular-shaped storage racks 250 sharing a common centralaxis. Each of the rows has a plurality of compartments 369. Each storagerack 250 includes radially extending, angularly separated compartmentpanels defining article storage compartments 369 which are designed toreceive and retain flat-type pack articles, such as DVD cases, asdesired. The compartment panels are preferably axially aligned to retainthe opposing sides of DVD cases at the top and bottom ends thereof. Inthat regard, the DVD cases are preferably retained between successivevertical pairs of storage racks 250. The storage racks 250 arevertically spaced by axially extending support members 254.

A first motor 251, hereinafter referred to as the rotational motor,rotates the storage device 248 about a vertical axis formed by thedriven shaft 252. As shown in FIG. 4, rotational motor 251 drives a belt259, which in turn rotates wheels 253 and shaft 252 to which the storageracks 250 are attached.

As shown in FIGS. 3 and 4, a selector arm 256 having a picker device 264which is capable of removing a DVD from the compartments 369, isadjacent the storage device 248.

The selector arm 256 may further comprise a conveyor belt 374, whichcontacts one of the media products in one of the compartments 369 andconveys the product to the article transfer opening 244 whereby it isdelivered to a user on the exterior of the article dispensing machine230. The conveyor 374 is driven by a conveyor motor 372. Further detailspertaining to the mechanics and operation of the selector arm aredisclosed in commonly owned U.S. Pat. Nos. 7,234,609 and 7,366,586 andU.S. patent application Ser. No. 11/863,909, the contents of which areherein incorporated by reference in their entirety.

As shown in FIG. 5, the dispensing machine contains a code readingdevice 370. The code reading device may be an image capture device suchas a digital camera, or a constant reading device such as a scanner or adigital video camera or a RF scanner. The code reading device ispositioned to read an article identification code from an article as thearticle is placed in the receptacle 244. An article database correlatesthe article identification code to certain article information, such as,for example the title of a DVD.

A first embodiment of a method for exchanging an inoperable disk for anoperable one 400 is shown in FIG. 6. The user interface 234 presents auser returning a DVD with the option to request to exchange aninoperable DVD for an operable one as shown in step 402.

The user interface 234 identifies the customer via information obtainedfrom a card. In this embodiment, the user interface 234 prompts thecustomer to insert or swipe a membership card into the card reader 240.Identification information is read from the membership card, which maybe a credit or debit card, and the user is identified as shown in step404. User identification may be performed by the vending machineprocessor 300 or the central processor 303.

Alternatively, as shown in FIG. 7, the identification of the user may bedetermined based on the returned article. As shown in this secondembodiment 450, the user initiates the exchange of an inoperable diskfor an operable one via the user interface, step 452. The user interfacethen instructs the customer to insert the inoperable disk into thereceptacle 244, as shown in step 454. The code reading device 370 thenreads the article identifier from the disk as shown in step 456. Thevending controller/processor then references a transaction database toidentify the customer to whom the disk having the article identifier hasbeen rented as shown in step 458. Optionally, the user interface 234 maythen request verification from the customer that the system hasidentified the correct customer.

In the embodiments shown in FIGS. 6 and 7, 400 and 450, the user'seligibility to perform the exchange is then determined. In a firstembodiment, the user's identification information is checked against acustomer exchange “blacklist” that identifies users who are prohibitedfrom exchanging an inoperable article for an operable one as shown insteps 406, 460. The users may be identified on the exchange blacklist byan identification code, for example, by the card number of the user orby a cryptographic representation of a user card number. The customerexchange blacklist may be stored on the central memory 304 or it may bestored on both the central memory and the memories of the individualkiosks 281. If the customer is listed on the customer exchangeblacklist, the user interface 234 notifies the customer that he or sheis ineligible to exchange the inoperable disk for an operable one, steps408, 462. If the customer is not eligible for an exchange, the kiosk,via the user interface 234 may ask the customer if he or she wants toreturn the disk, as shown in step 464, at which point the normal returnprocedure would be followed.

In a second embodiment, instead of maintaining a blacklist, againstwhich the customer's identification is checked, a customer's rentalactivity may be dynamically checked for certain eligibility criteria. Ahistory of the customer's rental activity is stored on the centralmemory 304 or, alternatively, it may be stored on both the centralmemory and the memories of the individual kiosks 281.

One such customer criterion may be the percentage of transactions thatresult in exchanges of inoperable articles. For example, a customer whohas exchanged an inoperable article during more than 20% of his or herrental transactions may be added to the blacklist. Another suchcriterion may be the frequency of customer exchanges. For example, acustomer who has exchanged at least one inoperable article per week forfour consecutive weeks may be blacklisted. Another such criterion may bethe number of current rentals that the customer has, whereby thecustomer would not be permitted to perform an exchange if he or she hasmore than X number of rentals checked out. Another such criterion may bethe number of exchanges, in which, a customer who has exchanged morethan X number of times may be blacklisted. Yet another such criterionmay be the time since the last exchange, for example a customer may beadded to the blacklist if he or she has exchanged an inoperable articlewithin the past day. In addition, a blacklist may use more than one ofthese criteria. For example, customers may be added to the blacklist ifthey exceed the set percentage of transactions that result in exchangesor if the customer has exchanged an article within the past day.

In the embodiment in which a customer blacklist is used, theabove-listed criteria may also be used to determine when a customer isplaced on the blacklist. A customer may be removed from the blacklistwhen that customer's transaction history no longer satisfies theblacklist criteria. For example, if a customer has been added to theblacklist because his or her percentage of transactions that resulted inexchanges exceeded the predetermined threshold, the customer may beremoved from the blacklist when the customer's percentage of rentalsthat result in exchanges drops below that predetermined threshold.Alternatively, a customer may be removed from the blacklist manually bya customer service person with access to and permission to edit theblacklist via a personal computer in communication with the centralserver.

If the customer is determined to be ineligible for an exchange inprocess 400, as shown in step 410, the user interface 234 instructs thecustomer to insert the inoperable disk into the receptacle 244. Thesystem then reads the article identifier from the disk using the codereading device 370, as shown in step 412. An article identifier databasewhich may be stored on the kiosk memory 281, is accessed to determinethe type of the article, which, in the case of a DVD or the like isrepresentative of the title of the article, and which may be representedby a code. Once the type of the returned article is determined (thetitle of the DVD), the system accesses an inventory database which maybe stored on the kiosk memory 281 to determine whether the articledispensing machine contains another article of the same type, hereinreferred to as an “identical replacement article” steps 414, 466. If thearticle dispensing machine contains one or more identical replacementarticles available, the article dispensing machine dispenses one of thereplacement articles, as shown in steps 416, 418, 468, 470. As shown insteps 420, 472, the article dispensing machine also updates its articleinventory database to identify the returned inoperable article as“inoperable” 420, 472. Articles in the inventory database marked as“inoperable” are unavailable for rental. Once the user has inserted theinoperable DVD into the receptacle 244, the inoperable DVD istransferred via the transfer mechanism 256 to an open storage slot 369in the vending machine.

If the article dispensing machine does not contain one or more identicalreplacement articles available for rental, in one embodiment, the userinterface 234 prompts the user to select another non-identicalreplacement article from the inventory of the article dispensingmachine, as shown in steps 422, 474. FIGS. 12-14 show exemplary articleselection and browsing screens of a user interface. The user thenproceeds to select a non-identical replacement article in steps 424,476, which may be vended to the user at no extra cost, steps 426, 478.

As shown in FIGS. 11-13, in an alternative embodiment, the articledispensing machine may provide the customer with a refund or creditcorresponding to the cost of the rental of the article instead ofproviding a replacement article in response to the consumer's request toreturn the inoperable article. FIG. 11 shows an order of operations 800for an article dispensing machine configured to identify the customerbased on information obtained from a customer identification card or thelike, determine if the customer is eligible for a refund, and, if so,provide a credit or refund to the customer. Specifically, in step 802,the article dispensing machine receives the customer initiation of areturn of an inoperable article for a refund via a user interface 234.The system then identifies the customer based on information receivedfrom a customer identification card or the like, as described above andas shown in step 804. Using the customer identification, the articledispensing machine then determines if the customer is eligible for arefund for the customer's return of an inoperable disk, as shown in step806. As discussed above, such a determination may be based on a customerblacklist or the customer's rental activity. If the customer isineligible for the refund, the article dispensing machine notifies thecustomer accordingly, as shown in step 808.

If, on the other hand, the article dispensing machine determines thatthe customer is eligible to return the inoperable disk for a refund instep 806, the machine then instructs the customer via the user interface234 to insert the unplayable disk into the receptacle 244 as shown instep 810. Once the disk has been received by the article dispensingmachine, as shown in step 812, the code reader 370 reads an articleidentifier from the disk to determine the identity of the disk asdescribed in detail above. As shown in step 813, the article dispensingmachine then proceeds to refund the cost of the rental for theinoperable disk to the customer's account. The instruction to provide acustomer refund is transmitted from the article dispensing machine 230to a financial server 305 and may be sent via the central server 302. Asshown in step 820, the article dispensing machine inventory is updatedto reflect that the returned article is inoperable.

As shown in step 814, the article dispensing machine also determines ifthere is another article having the same title in the machine'sinventory. If the article dispensing machine has an article of the sametitle, i.e. an identical replacement article, in its inventory, themachine offers the customer the option to rent one of the identicalreplacement articles via the user interface 234, as shown in steps 816and 818. If, on the other hand, the machine does not have an identicalreplacement article in its inventory, it offers the customer the optionto select and rent a different article, as shown in steps 822-826.

FIG. 12 shows an order of operations 850 similar to that shown in FIG.11, but, instead of identifying the customer based on informationobtained from a customer card, customer identification is based on theidentity of the returned article, as described above with respect toFIG. 7. Specifically, in step 852, the article dispensing machinereceives the customer initiation of a return of an inoperable articlefor a refund via a user interface 234. The system then receives theinoperable article from the customer via receptacle 244, as shown instep 854.

Once the disk has been received by the article dispensing machine, asshown in step 856, the code reader 370 reads an article identifier fromthe disk to determine the identity of the disk as described in detailabove. The vending controller/processor then references a transactiondatabase to identify the customer to whom the disk having the articleidentifier has been rented as shown in step 858. Using the customeridentification, the article dispensing machine then determines if thecustomer is eligible for a refund for the customer's return of aninoperable disk, as shown in step 860. As discussed above, such adetermination may be based on a customer blacklist or the customer'srental activity. If the customer is ineligible for the refund, thearticle dispensing machine notifies the customer accordingly, as shownin step 862, and may offer the customer the option to return the articlewithout a refund, as shown in step 864.

If the customer is eligible to return the article for a refund, as shownin step 860, the article dispensing machine then proceeds to refund thecost of the rental for the inoperable disk to the customer's account, asshown in step 865. The instruction to provide a customer refund istransmitted from the article dispensing machine 230 to a financialserver 305 and may be sent via the central server 302. As shown in step872, the article dispensing machine inventory is updated to reflect thatthe returned article is inoperable.

As shown in step 866, the article dispensing machine also determines ifthere is another article having the same title in the machine'sinventory. If the article dispensing machine has an article of the sametitle, i.e. an identical replacement article, in its inventory, themachine offers the customer the option to rent one of the identicalreplacement articles via the user interface 234, as shown in steps 868and 870. If, on the other hand, the machine does not have an identicalreplacement article in its inventory, it offers the customer the optionto select and rent a different article, as shown in steps 874-878.

As shown in FIGS. 8, 13 and 9, and processes 600 and 900, optionally,the article dispensing machine may offer the customer the choice tosearch the inventories of remotely located vending machines for one ormore identical replacement articles located at those remote vendingmachines and generate a list of remote article vending machines at whichan identical replacement article is available. A database of theinventory of the remote article vending machines may be stored at thecentral memory 304. A copy of the inventory database may also be storedon the memory of the local kiosk 281. The user interface 234 may providethe customer with the option to select from the list of remote articlevending machines at which an identical replacement article is availableand reserve one of the identical replacement articles at a remotevending machine. A further discussion of searching and remotelyreserving articles follows.

FIGS. 8 and 13 shows an order of operations 900 and 600 similar to thoseoperations in FIGS. 7 and 12, respectively, but in FIGS. 8 and 13, if anidentical replacement article is not present in the vending machine towhich the article was returned, instead of or in addition to offering tothe customer the option to rent a different article, the articledispensing offers the customer the option to search neighboring vendingmachines for articles having the same title as the returned article, asshown in step 602.

As shown in FIG. 9, once a request to search the inventory of remotearticle dispensing machines has been initiated in step 604 the systemreceives a location identifier, as shown in step 606. The locationidentifier identifies the location of the user. The location identifiercan be received from several sources. First, the location identifier canbe received manually from a user at the vending location. In thatembodiment, the user interface 234, at the vending apparatus 230requests that the user provide the location identifier. The user thensupplies the location identifier using the keypad or touch screen. Anexemplary touch screen numeric key pad is shown as 420 in FIG. 14. Inthat embodiment, the location identifier can be data that is easy torecall for the user, such as a zip code. In another embodiment, thelocation identifier is received automatically, from the vendingcontroller 300. The vending controller in that embodiment is providedwith data identifying its own location, such as an address, anintersection, a global positioning identifier or other coordinate dataidentifying its physical location. Alternatively, the each articledispensing machine may have a unique identifier associated with thatmachine. The central server may have a database stored on the centralserver memory that correlates a set of parameters associated with theunique identifier for each dispensing machine, including the location ofthe machine. In this embodiment, the central processor may use theunique identifier for each machine to look up the parameters of thearticle dispensing machine, including its location, on the database.

Next, as shown in step 608, the user interface may optionally requestthat the user limit the geographic range of the search by inputting alocation search parameter. For example, the user may request that thesearch be limited to locations within a 5 mile radius or a specific zipcode. The kiosk then receives that user entered location searchparameter in step 610.

Next, in step 612, optionally the location identifier and the searchparameter may be transmitted from the vending controller 300 to thecentral server 302. In essence, the vending controller 300 requests ofthe central server 302 the location of identical replacement articles.In steps 614 and 616, the central server 302 queries the database 304 todetermine the location of the identified identical replacement articles.A query is performed on the database 304 to determine a vendingapparatus 230 inventory having an identical replacement article. Theresults of the query are then sorted according to their location, andare ranked according to the locations that are closest to the locationidentifier. For example, the first result will be the location of avending apparatus 230 that is one block away, the second result will bethe location of a vending apparatus 230 that is 1 mile away, and so on.Further, optionally the system may be configured to transmit anypredetermined number of locations. For example, the system may transmitto the user only one recommended location having the requested vendiblemedia product, or the system may suggest any number of locations havingthe product, wherein the suggestions are ranked in order of proximity tothe location identifier. Alternatively, the locations of a certainnumber of vending apparatuses within a certain distance may be displayedto the user and an indicator may identify to the user which of thoselocations has the identical replacement article in stock.

In step 618, the location of a vending kiosk 230 or locations ofmultiple kiosks having the requested vendible media product in theirvending inventory is received by the vending kiosk 230 at the firstlocation from the central server. In step 620, the location or locationscan be displayed on the touch sensitive display 234 at the vendingapparatus 230. Then, in step 622, the system generates an interface atthe first location from which the user can reserve the identicalreplacement article, located at the second location. Thus, the userinterface at the first vending apparatus 230 allows the user to reservethe identical replacement article from the inventory at a second,remotely located vending apparatus 330. The user reserves the identicalreplacement article via the user interface at the first vendinglocation, and the transaction data is transmitted to the central server302, and then to a vending controller 300 at the second remote vendinglocation which reserves the article for pick up by the customer as shownin step 624. The user interface then provides the customer instructionsfor retrieving the reserved article at the remote kiosk, as shown instep 626.

Then, at the remote vending location, the vending controller 300receives user identification, such as a credit card or identificationcard passed through the card reader 240 or, alternatively, a PINprovided by the user using the keypad 242. When the vending controller300 at the second vending location has confirmed the identity of theuser, the vending controller 300 generates a signal to deliver theidentical replacement article to the user at the second vendinglocation.

If the search for remote vending machines having an identicalreplacement article, step 614, within the user designated searchparameters does not result in any available locations, optionally theuser interface may offer the customer the option to modify the locationsearch parameters, as shown in step 628. If the customer opts to modifythe search parameters, a new search is conducted using the modifiedparameters. If the customer opts not to modify the search parameters,the customer may be given the option to select a non-identicalreplacement article, as shown in steps 630, 632.

In another aspect of certain embodiments shown in FIG. 10 as process700, an article vending machine may be configured to automaticallydispense all of the disks that have been identified as inoperable to aservice person. The vending machine is configured to receive a commandfrom an authorized service person instructing the vending machine todispense all of the disks that have been designated as inoperable step702. The processor references the inventory database to identify eachdisk that has been identified as inoperable, step 704. The transfermechanism 256 then removes the inoperable disks from their storage slotsone at a time and vends each disk from the receptacle, step 706. Theinventory database is updated to reflect that the vended inoperabledisks have been removed from the article vending machine, step 708.

Any process descriptions or blocks in figures represented in the figuresshould be understood as representing modules, segments, or portions ofcode which include one or more executable instructions for implementingspecific logical functions or steps in the process, and alternateimplementations are included within the scope of the embodiments of thepresent invention in which functions may be executed out of order fromthat shown or discussed, including substantially concurrently or inreverse order, depending on the functionality involved, as would beunderstood by those having ordinary skill in the art.

While the specific embodiments have been illustrated and described,numerous modifications come to mind without significantly departing fromthe spirit of the invention, and the scope of protection is only limitedby the scope of the accompanying Claims.

1. A method for receiving an inoperable article via an article vendingmachine and providing a refund for the rental of the inoperable article,the article vending machine having a user interface, a processor, areceptacle and an inventory of articles housed in the article vendingmachine, the method comprising the steps of: receiving a command throughthe user interface requesting to return an inoperable article; receivingthe inoperable article via the receptacle; identifying a customerassociated with the inoperable article using program code operating withthe processor; and determining if the customer is eligible to receive arefund for the rental of the inoperable article using the program code,and, if the customer is eligible, permitting the refund; and,determining if the inventory contains an identical replacement articleusing the program code.
 2. The method of claim 1, wherein the articlevending machine is networked to a plurality of remote vending machineseach having an inventory of articles, the method further comprising thesteps of: if the inventory of the article vending machine does notcontain an identical replacement article, determining which remotevending machines comprise an identical replacement article within therespective remote vending machine inventories; and, transmitting a listof remote vending machines having identical replacement articles to theuser interface.
 3. The method of claim 2 further comprising the step oftransmitting to the user interface an option to reserve the identicalreplacement article at one of the remote vending machines.
 4. The methodof claim 2 further comprising the step of transmitting to the userinterface an option to receive a non-identical replacement article ifthe article vending machine inventory does not contain an identicalreplacement article.
 5. The method of claim 2 further comprising thestep of transmitting to the user interface an option to receive refundfor the cost of the rental of the inoperable article if the articlevending machine inventory does not contain an identical replacementarticle.
 6. The method of claim 1, wherein the determination of whethera customer is eligible to receive a refund for the inoperable article isbased, at least in part, on at least one customer criterion selectedfrom the group consisting of number of returned inoperable articles,frequency of returns of inoperable articles, percentage of transactionsresulting in an returns of an inoperable article, and time of lastreturn of an inoperable article.
 7. The method of claim 1, wherein thedetermination of whether a customer is eligible to receive a refund forthe inoperable article is based on whether the customer is listed on aninoperable article refund blacklist.
 8. The method of claim 1 furthercomprising the steps of: reading an article identifier from theinoperable article; and referencing a database to determine the identityof the returned article based on the article identifier.
 9. The methodof claim 8, further comprising the step of identifying a database entryfor the inoperable article.
 10. The method of claim 9, furthercomprising the step of modifying, the database entry for the inoperablearticle to indicate that the corresponding article is inoperable. 11.The method of claim 10, further comprising the step of prohibitingrental of the inoperable article.
 12. The article vending machine ofclaim 11 wherein the article vending machine is networked to a pluralityof remote vending machines each having an inventory of articles.
 13. Thearticle vending machine of claim 12 wherein the program code is furtherconfigured to determine which of the remote vending machines have intheir inventories an identical replacement article and to provide a listof the remote vending machines having identical replacement articles.14. The article vending machine of claim 13 wherein the program code isfurther configured to permit a user to reserve one of the identicalreplacement articles at one of the remote vending machines on the listof the remote vending machines having identical replacement articles.15. The article vending machine of claim 11 wherein the program code isconfigured to provide, via the user interface, an offer to select anon-identical replacement article if it is determined that the articlevending machine does not have an identical replacement article.
 16. Thearticle vending machine of claim 11 wherein the program code isconfigured to provide, via the user interface, a coupon for a rentalarticle if it is determined that the article vending machine does nothave an identical replacement article.
 17. A network of article vendingmachines comprising: a first article vending machine comprising; aninventory comprised of a plurality of rental articles; a receptacle forreceiving an inoperable rental article; and a user interface configuredto receive a request to return the inoperable rental for a refund; aplurality of remote article vending machines in communication with thefirst article vending machine, each remote article vending machinehaving an inventory of a plurality of rental articles; and, a processorconfigured using program code to determine if the inventory of the firstarticle vending machine contains a replacement article that is identicalto the inoperable article.
 18. The network of article vending machinesof claim 17 wherein the program code is further configured to determineif one or more of the remote article vending machines contain anidentical replacement article, if the inventory of the first articlevending machine does not contain an identical replacement article. 19.The network of article vending machines of claim 18 wherein the userinterface is configured to display an identification of the one or moreremote article vending machines that contain an identical replacementarticle and to permit a user to select one of the one or more of theremote article vending machines that contain an identical replacementarticle and reserve the identical replacement article at the selectedremote article vending machine.
 20. The network of article vendingmachines of claim 17 further comprising a memory containing a list ofcustomers ineligible to return inoperable articles for a refund.
 21. Thenetwork of article vending machines of claim 17 wherein the program codeis configured to offer the customer, via the user interface, the optionto receive a non-identical replacement article, if the inventory of thefirst article vending machine does not contain an identical replacementarticle.
 22. The network of article vending machines of claim 17,wherein the determination of whether a customer is eligible to receive arefund for returning the inoperable article is based, at least in part,on a customer criterion selected from the group consisting of number ofreturned inoperable articles, frequency of returns of inoperablearticles, percentage of transactions resulting in an returns of aninoperable article, and time of last return of an inoperable article.23. The network or article vending machines of claim 17, wherein thedetermination of whether a customer is eligible to receive a refund forthe inoperable article is based, at least in part, on the frequency ofreturns of inoperable articles by that customer.
 24. An article vendingmachine configured to receive an inoperable rental article and provide arefund for the rental of the inoperable article, the article vendingmachine comprising: a user interface configured to receive a request toreturn an inoperable rental article for an refund; a receptacle forreceiving the inoperable rental article; an inventory comprised of aplurality of articles; a memory containing a database identifying theinoperable rental articles that have been received; and, a processor incommunication with the user interface and configured using program codeto receive a request from a service person via the user interface tovend all of the articles identified as inoperable articles in thedatabase.
 25. The article vending machine of claim 24 wherein thearticles are vended via the receptacle in response to the request from aservice person to vend all of the articles identified as inoperablearticles in the database.
 26. A method for purging inoperable rentalarticles from an article vending machine having a user interface, areceptacle, an inventory of articles housed in the article vendingmachine, a processor, a database of information relating to theinventory of articles, and at least one of the inventory of articleshaving been identified as inoperable in the database, the methodcomprising the steps of: receiving a command via the user interfacerequesting a purge of the inoperable articles; marking each of thearticles identified in the database as inoperable using program codeoperating with the processor; automatically vending each of the articlesidentified as inoperable via the receptacle using the program code; and,deleting the entry for the vended inoperable articles from the database,using the program code.